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EU Proposal on Crowdfunding Service Providers may affect blockchain business

The EU Commission has come up with the new Proposal for a Regulation on European Crowdfunding Service Providers (the “Proposal”). If the Proposal comes into force, it will influence businesses that collect investors funds as loans, platforms that provide fundraising services, and ICO’s businesses. Here are 10 main things you need to know about the Proposal and some possible challenges for fundraising platform business utilizing blockchain technologies (“Blockchain platforms”).

  1. The proposal covers investment- and lending-based crowdfunding platforms
  2. Payments shall be made only via authorized payment service providers
  3. Subjects to the EU AML legislation
  4. Threshold of EUR 1,000,000
  5. Regulation is optional to service providers operating under national law
  6. Conflict of interest
  7. Additional license for crowdfunding service providers
  8. An entry knowledge test
  9. Key investment information sheet
  10. Timeline to receive the authorization
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Authors:
VEIKKO TOOMERE
Attorney at law, Partner
Direct: (+372) 66 76 446
Mobile: (+372) 50 45 211
vt@njordlaw.ee

NIKOLAY DEMCHUK
Associate, Tallinn
Direct: (+372) 66 76 452
Mobile: (+372) 57 80 77 53
nd@njordlaw.ee
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#crypto, banking

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